SCZ vs. IAU

Last updated Jun 4, 2026

SCZ (iShares MSCI EAFE Small-Cap ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - SCZ is a Foreign Small & Mid Cap Equities fund tracking the MSCI EAFE Small Cap Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, SCZ returned 8.03%/yr vs 13.31%/yr for IAU. At a 0.19 correlation, their price movements are largely independent. SCZ charges 0.40%/yr vs 0.25%/yr for IAU.

Performance

SCZ vs. IAU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI EAFE Small-Cap ETF (SCZ) and iShares Gold Trust (IAU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCZ achieves a 9.56% return, which is significantly higher than IAU's 2.98% return. Over the past 10 years, SCZ has underperformed IAU with an annualized return of 8.03%, while IAU has yielded a comparatively higher 13.31% annualized return.

SCZ

• 1D: -0.72%
• 1M: 2.75%
• YTD: 9.56%
• 6M: 12.13%
• 1Y: 24.04%
• 3Y*: 16.13%
• 5Y*: 5.02%
• 10Y*: 8.03%

IAU

• 1D: -0.98%
• 1M: -1.62%
• YTD: 2.98%
• 6M: 5.50%
• 1Y: 32.20%
• 3Y*: 31.29%
• 5Y*: 18.32%
• 10Y*: 13.31%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SCZ vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCZ iShares MSCI EAFE Small-Cap ETF	9.56%	32.08%	1.52%	12.98%	-21.27%	10.12%	11.71%	24.68%	-17.64%	32.72%
IAU iShares Gold Trust	2.98%	63.95%	26.85%	12.84%	-0.63%	-4.00%	25.03%	17.98%	-1.76%	12.91%

Correlation

The correlation between SCZ and IAU is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (5Y) Calculated over the trailing 5-year period	0.34
Correlation (10Y) Calculated over the trailing 10-year period	0.24
Correlation (All Time) Calculated using the full available price history since Dec 13, 2007	0.19

The correlation between SCZ and IAU shifts across timeframes, from 0.19 (all time) to 0.38 (1 year), reflecting how their relationship changes across market environments.

SCZ vs. IAU - Sectors Allocation Comparison

Sectors	SCZ	IAU
Industrials	24.6%	-
Financial Services	12.5%	-
Consumer Cyclical	11.8%	-
Basic Materials	10.7%	-
Real Estate	10.3%	100.0%
Technology	9.1%	-
Healthcare	5.5%	-
Consumer Defensive	5.0%	-
Communication Services	4.1%	-
Energy	3.7%	-
Utilities	2.8%	-

Return for Risk

SCZ vs. IAU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SCZ

SCZ Risk / Return Rank: 47
SCZ Sharpe Ratio Rank: 47
SCZ Sortino Ratio Rank: 48
SCZ Omega Ratio Rank: 48
SCZ Calmar Ratio Rank: 42
SCZ Martin Ratio Rank: 48

IAU

IAU Risk / Return Rank: 32
IAU Sharpe Ratio Rank: 33
IAU Sortino Ratio Rank: 29
IAU Omega Ratio Rank: 36
IAU Calmar Ratio Rank: 33
IAU Martin Ratio Rank: 29

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SCZ vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI EAFE Small-Cap ETF (SCZ) and iShares Gold Trust (IAU). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	SCZ	IAU	Difference
Sharpe ratio Return per unit of total volatility	1.67	1.23	+0.45
Sortino ratio Return per unit of downside risk	2.39	1.62	+0.78
Omega ratio Gain probability vs. loss probability	1.31	1.24	+0.06
Calmar ratio Return relative to maximum drawdown	2.11	1.69	+0.43
Martin ratio Return relative to average drawdown	8.08	4.19	+3.89
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCZ vs. IAU - Sharpe Ratio Comparison

The current SCZ Sharpe Ratio is 1.67, which is higher than the IAU Sharpe Ratio of 1.23. The chart below compares the historical Sharpe Ratios of SCZ and IAU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SCZ	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.67	1.23	+0.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	1.03	-0.73
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.46	0.84	-0.38
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.62	-0.36

Drawdowns

SCZ vs. IAU - Drawdown Comparison

The maximum SCZ drawdown since its inception was -61.86%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for SCZ and IAU.

Drawdown Indicators

	SCZ	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-61.86%	-45.14%	-16.72%
Max Drawdown (1Y) Largest decline over 1 year	-11.43%	-19.18%	+7.75%
Max Drawdown (3Y) Largest decline over 3 years	-15.06%	-19.18%	+4.12%
Max Drawdown (5Y) Largest decline over 5 years	-36.87%	-20.93%	-15.94%
Max Drawdown (10Y) Largest decline over 10 years	-41.07%	-21.82%	-19.25%
Current Drawdown Current decline from peak	-1.79%	-17.70%	+15.91%
Average Drawdown Average peak-to-trough decline	-13.06%	-15.96%	+2.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.98%	7.71%	-4.73%

Volatility

SCZ vs. IAU - Volatility Comparison

The current volatility for iShares MSCI EAFE Small-Cap ETF (SCZ) is 4.57%, while iShares Gold Trust (IAU) has a volatility of 5.50%. This indicates that SCZ experiences smaller price fluctuations and is considered to be less risky than IAU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCZ	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.57%	5.50%	-0.93%
Volatility (6M) Calculated over the trailing 6-month period	11.95%	23.02%	-11.07%
Volatility (1Y) Calculated over the trailing 1-year period	14.47%	26.42%	-11.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.74%	17.95%	-1.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.43%	15.90%	+1.53%

SCZ vs. IAU - Expense Ratio Comparison

SCZ has a 0.40% expense ratio, which is higher than IAU's 0.25% expense ratio.

Dividends

SCZ vs. IAU - Dividend Comparison

SCZ's dividend yield for the trailing twelve months is around 3.01%, while IAU has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAU iShares Gold Trust	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SCZ iShares MSCI EAFE Small-Cap ETF	3.01%	3.30%	3.50%	2.96%	1.99%	2.96%	1.52%	3.52%	2.79%	2.38%	2.82%	2.06%

Frequently Asked Questions

Can I hold both SCZ and IAU in my portfolio?

SCZ and IAU have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCZ or IAU?

IAU has higher volatility (5.50%) compared to SCZ (4.57%). In terms of maximum drawdown, SCZ dropped -61.86% vs IAU's -45.14%.

Which ETF is better, SCZ or IAU?

On 10-year performance, IAU leads with 13.31% vs 8.03% for SCZ. On fees, IAU is cheaper at 0.25% per year. On volatility, SCZ has been the lower-risk option at 4.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCZ or IAU?

Over the 10-year period, IAU has performed better with a 13.31% return vs 8.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCZ or IAU?

IAU is cheaper with a 0.25% expense ratio, compared with 0.40% for SCZ.

Which ETF pays a higher dividend yield, SCZ or IAU?

SCZ has the higher dividend yield at 3.01%, compared with 0.00% for IAU.

What is the main difference between SCZ and IAU?

SCZ is categorized as Foreign Small & Mid Cap Equities, while IAU is Gold. SCZ tracks MSCI EAFE Small Cap Index, while IAU tracks LBMA Gold Price. Their fees differ too: 0.40% for SCZ and 0.25% for IAU.

Which has better risk-adjusted returns?

SCZ currently has the higher Sharpe Ratio (1.67 vs 1.23), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.